The rise of the gig economy has quietly transformed how people work and how services reach customers in Nepal. From food arriving at our doorstep to a ride booked with a tap on a phone, digital platforms have made everyday life faster and more convenient. Behind this convenience, however, are thousands of delivery riders and gig workers navigating traffic, weather, long hours, and uncertainty—often invisible to the customers they serve. As Nepal’s gig economy grows rapidly, it raises important questions about labor conditions, dignity, and the future of work.
The gig economy refers to a labor market where individuals work on a short-term, task-based, or freelance basis rather than holding permanent jobs. These workers are usually connected to customers through digital platforms, such as ride-hailing apps, food delivery services, and online freelancing websites. In Nepal, the gig economy has expanded significantly due to increased smartphone use, internet access, and a lack of formal employment opportunities, especially for young people.
According to a 2024 report by the Asian Productivity Organization (APO), the gig economy contributed around seven percent of Nepal’s GDP, highlighting its growing importance to the national economy. Platforms like Pathao, InDrive, and Yango have become household names, offering flexible work opportunities to thousands of people across the country.
The gig economy in Nepal is not limited to transportation and food delivery. The Online Labor Index shows that 49 percent of Nepal’s online freelance workforce is engaged in software and technology development, indicating strong participation in global digital labor markets. At the same time, local platforms continue to expand. Pathao alone has provided employment to over 200,000 individuals, including motorbike riders, cab drivers, and food delivery personnel, according to the APO.
Food delivery services have also seen major growth. Foodmandu, one of Nepal’s leading food delivery companies, has reported annual business worth over $5.58m in recent years. These platforms have attracted venture capital and helped shape a new service-based urban economy.
Delivery riders are among the most visible yet least acknowledged workers in the gig economy. While customers often expect quick and timely service, riders face numerous challenges—traffic congestion, poor road conditions, harsh weather, system glitches, and unfamiliar locations. They are expected to meet strict delivery deadlines, even when circumstances are beyond their control.
Many riders continue working while hungry, cold, or exhausted, prioritizing deliveries over their own well-being. As customers, frustration can easily turn into anger when food arrives late. I experienced this myself while ordering food—the rider struggled to find my location, and though I remained silent, hunger and irritation built up. It was only later, after speaking with a rider named Bikab (name changed), that I understood the pressure riders face. Bikab shared that he had worked full-time in food delivery before taking a break and later returning.
The gig economy has also opened doors for people beyond Kathmandu. In the fiscal year 2021/22, over 25 percent of gig workers came from rural areas, according to the published article in Nepal Economic Forum, showing how digital platforms are spreading economic opportunities nationwide. This expansion has helped raise household incomes, reduce inequality, and provide flexible work options—especially for women balancing paid work with family responsibilities.
Bikab shared that he previously worked in a salaried position, earning Rs 15,000 per month, which was sufficient for him at the time. He mentioned that customers were generally polite and well-behaved, and when he treated them kindly, they were understanding in return. He said “I am not aware of any rating system” and added that the company provided insurance and compensated him in case of an accident”. Additionally, he was paid Rs 7 per kilometer, which was deposited on a weekly basis. He said that when he used to do it a year ago, the order used to be less and this time when he started it again, the orders were comparatively higher than before.
Minaj (name changed), another delivery rider, has been working on a bicycle for the past five months. Still in his early twenties, he is still figuring out his future while dreaming of pursuing higher education. He works on a per-order basis, earning Rs 120 per delivery.
According to him, customers sometimes get angry, mainly due to delays caused by restaurants or road blockages during deliveries. Although there is a rating system, he feels that customers are not very interested in it. However, colleagues say that ratings can affect their performance and overall service.
Regarding insurance, he shared that the company has stated insurance will only be provided once a damage exceeds Rs 15,000. “For cycle riders, we are usually assigned nearby areas, but since I use an EV cycle, they sometimes send me 8–9 km away,” he added. On average, he said he can complete a maximum of 10–12 orders per day.
His friend, Karol (name changed) explained that refusing an order increases pressure on other cyclists, forcing them to clear additional deliveries. Riders often have to wait for orders, and at times they do not receive enough requests consistently.
“We do this as a part-time job, but we still have to work around 8–8.5 hours daily, and sometimes we reach home as late as 10 or 11 at night,” said Karol. The salary is deposited on a weekly basis.
They noted that while customers are gradually adapting to delivery services, young riders have become dependent on weekly payments. He believes this system, although convenient, makes it difficult to wait an entire month for salary, which could otherwise offer more stability.
They also expressed concerns about job security. The bicycles are rented, meaning riders must take responsibility for maintenance and payment. “It’s risky,” Minaj said, adding that he knows several riders who lost their cycles and are still paying for them.
There is less family support for this work, and they do it mainly for pocket money. He said he does not see a long-term future in the job and feels that despite having good academic records, he has lost a year after getting into this work. Minaj also mentioned that there is limited freedom within the company. Senior staff often put pressure on riders, and while some days they are unable to take orders, on others they are required to work until 10 pm.
Minaj and Karol concluded by saying that the company is highly customer-oriented but does not adequately care for or support its riders. They believe the company should value its riders more and introduce clear daily targets, which could help regulate working hours and improve overall working conditions.
Looking ahead, the gig economy holds both promise and concern. While it can continue to generate employment and innovation, issues such as job security, fair wages, insurance, and worker protection need urgent attention. Delivery riders, they are humans with limits, responsibilities, and dreams.
Navaraj Mishra, the operation head of Nepal Can Move, stated that the company does provide accidental insurance to its riders through an insurance provider. He explained that working hours are fixed at eight hours per day for salary-based riders, while there is no fixed schedule for those working on a freelance or contract basis.
He noted that rider payments already include expenses related to maintenance and petrol, and that workers are categorized under two employment models: salary-based and contract-based. “There is no strict or compulsory dress code for riders. However, all riders are required to carry delivery bags, which are provided by the company to ensure consistency and safety while transporting orders,” he said.
Emphasizing rider welfare, Mishra said that Nepal Can Move provides safety training which are designed to help riders understand road safety, delivery protocols, and precautionary measures to reduce the risk of accidents while on duty.
He added that the company continues to focus on improving operational standards while supporting its delivery workforce. According to Mishra, Nepal Can Move currently has an estimated total of more than 1,200 riders working.
For the gig economy to be truly sustainable, companies, policymakers, and consumers must work together to ensure dignity, safety, and fairness for those who keep the system running. Only then can convenience coexist with compassion in Nepal’s rapidly evolving world of work.
Santosh Khadka, customer service at Bhoj Deals, said the company currently works with more than 150 riders and places strong emphasis on transparency, safety, and rider well-being. “All our riders go through a detailed orientation program before starting their job. During this time, everything is clearly explained—from working hours to company policies. The working hours are flexible and depend on the rider’s convenience, while fully complying with labor laws. If riders choose to work extra hours, they are compensated with overtime pay,” he said.
“We have a built-in rating system in our app that allows us to receive daily customer feedback on rider performance. This helps us track individual KPIs and continuously improve our service standards.”
According to Khadka, new riders also receive five to seven days of training, depending on their performance. “Every rider is covered by accidental insurance from day one.” Customer experience remains a top priority for the company, he emphasized. “If any issue arises, we take immediate action. We have a dedicated customer care department that contacts both the customer and the rider to understand the situation. Customers who harass or abuse riders are flagged in our system to prevent future incidents,” Khadka said.
He also noted that Bhoj Deals offers flexible earning models like, “Riders can choose from multiple shifts based on their convenience, and we have different earning modalities. In the case of fuel price hikes, we increase fuel reimbursement rates for bike riders,” he added.
Khadka further said the company actively promotes work-life balance and close rider management. “We have a dedicated rider management team consisting of a manager and four assistants. Each rider is monitored individually and remains in daily communication with the team. Additionally, our CEO meets with riders once every month to listen to their concerns and operational challenges,” he said.
Binay (name changed) is an engineering student who joined the delivery sector just a month ago. He currently works at Bhoj Deals on a weekly salary basis. “I am here for a very short period of time and trying to travel abroad,” the 24-year-old said. He explained that dealing with customers can be challenging. “Customers are sometimes rude, and we have to find ways to explain delays. Some understand, but many get angry. We also have to accept when we ourselves are delayed,” he said. He earns enough to cover his daily expenses, receiving Rs 7–8 per kilometer for petrol. “I don’t feel pressured right now, but the real pressure comes from the seniors,” he added. According to him, stress is especially noticeable when deliveries are late. The costs of accidents and health issues are mostly covered by the company’s insurance. The company provides training as well, but Binay didn’t find it very important and attended it for only a day.
The experiences of riders highlight the human side of Nepal’s rapidly growing gig economy. While these platforms offer flexible work opportunities and contribute significantly to the economy, they also expose workers to long hours, uncertain incomes, and pressures from both customers and company management. As the gig economy continues to expand beyond Kathmandu into rural areas, it is essential for companies, policymakers, and consumers to recognize that behind every delivery and service is a worker navigating real risks, responsibilities, and dreams. Only by balancing convenience with compassion can Nepal’s gig economy thrive sustainably, ensuring dignity, safety, and opportunity for all its workers.